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Issue 24 Vol I, September 30, 2006 Archive Print


E D I T O R I A L

Hollow Leaders, Hollow Promises

IT required the salubrious calm atmosphere of Nainital for the Congress leadership to understand that our agriculture sector is facing a real crisis and something needs to be done immediately. And, again if a spate of suicides had not been taking place in Maharashtra, Andhra, Karnataka, Punjab and other states, the leadership could still be in deep slumber. Just on September 24 when the chief ministers from 14 Congress ruled states were debating the crisis with the Congress President Sonia Gandhi and Prime Minister Dr Manmohan Singh, eleven farmers had taken their lives in the cotton rich Vidharbha region of Maharashtra. 97 farmers had killed themselves in September alone. During this Kharif as many as 902 farmers have taken the drastic step.  Of them, 298 have committed suicide after Prime Minister Manmohan Singh's visit in July when interest on loans was waived off and loan recovery postponed. A sum of Rs 712 crore was spent for the purpose. The government has also engaged spiritual leaders to boost the morale of the farmers. But of little avail. Now Maharashtra is demanding Rs 16,000 crore to complete irrigation projects in this region.

And, it again required Mrs. Gandhi to tell the platoon of central ministers and the chief ministers to take care of farmers when acquiring their lands to set up special economic zones or housing complexes or infra structure projects. At one level bad policies have rendered the farmers under fatal debt, at another level the greedy corporate land mafia is devouring their land to make billions of rupees. In Punjab alone the total debt of Punjab farmers is Rs 25,000 crore and the 24 to 36 per cent interest charged pushes it up by Rs 3,000 crore a year. The 55th round of the NSS has discovered that in Andhra Pradesh, 82 per cent farmers are under debt followed by 74.5 per cent in Tamil Nadu and 65.4 per cent in Punjab. Our economists tell us that in terms of per farmer debt; Punjab tops the all-India list. A number of farmers in Punjab, particularly in the Malwa have committed suicides. Although no systematic record is available, yet several studies have established a link between economic distress and farmers committing suicides. The study conducted by the Movement against State Repression (MASR) in Lehra and Andana-blocks of Sangrur district between April 2001 and March 31 2006 puts the number at 56.

Worst off are small and marginal farmers. Every year they hope for a rich harvest in the next season, take loans on the basis of this wishful projection but when the crops fail, they collapse into a hopeless state and think that the only way out for them is death. Rampant corruption adds to their woes as do the empty promises. Who would free them from the clutches of unscrupulous money-lenders and bankers?

Now what is the  advice rendered by country’s most powerful leader: "All that I wanted to convey was that wherever SEZs are created, caution must be observed to take into account the long-term effects on such people whose land was being acquired." There was neither clearly a wholesome review of the SEZ nor any policy guidelines the compensation and rehabilitation of farmers and farm workers. Proper rehabilitation and job reservations were already there and have meant nothing to the hapless farmers and other landless villagers.  And prime minister added, "The issue of farmers' suicides figured high on our agenda. We have already announced a package for farmers from Vidharbha region, while steps are underway for other affected states."  Was he oblivious that his package has not stopped the spate of suicides? Every four hours one farmer commits suicide.

The way the land is being acquired, in fact, usurped in Uttar Pradesh, Haryana and Punjab for these so called special economic zones needs a total review. Why any big industrialist should be given fertile farm land at throw away prices and much more than his requirement. Reliance has got huge chunk of 2000 acres near Dadri in Uttar Pradesh for power plant. It needs just 300 acres and 30,000 acres of precious fertile land in Gurgaon and Jhajar in Haryana and now 1200 acres in Amritsar for DLF. Much of it is meant for housing and other commercial activity. Farmers would be rendered paupers and some individual houses become filthily rich.

There is logic in the demand raised by experts, and some political leaders that this special economic zone policy shall be a threat to food security in the long run. Doabas in U.P, Punjab and Haryana, the bastion of green revolution, have some country’s most fertile land and these region supplies 67 of total wheat procurement and 56 per cent of rice for the country’s buffer.   This makes every acre precious.

On economic parameters too the policy is faulty. As reserve bank of India has pointed these zones would create serious imbalances in economic development and push migration from lesser development areas to these zones. India’s Comptroller and Auditor General has pointed that government loses more money in terms of tax concessions than gains in terms of production. Finance ministry has estimated that the tax loss would touch Rs 90,000 crore. The government says that the expected investment could be around Rs 1, 00,000 crore. How would the government bear this huge loss in taxes? These zones are duty bound to produce for export and we know our business people and the government officials and much of the product would find way to domestic market, leading to more revenue loss and unhealthy business competition.

There should be an independent judicial land use board with final powers to sanction land use as is in Canada where the land is plenty as its size 9.9 million square kilometers is seven times that of India and population just 32 million. Also, the land should not be acquired. It should be leased on fifty year basis, subject to revision of lease agreement and farmers should be paid monthly lease money besides share in the equity. Villagers’ economic welfare and their dignity should be the prime concern of any good policy.

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